PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited
Figures in tables are expressedin billions of rupiah, unless otherwise stated
85
continued a. Prepaid pension benefit costs continued
June 30, December 31,
2014 2013
Service costs 95
450 Interest costs
654 1,183
Expected return on pension plan assets 803
1,485 Amortization of prior service costs
39 139
Net periodic pension costs 15
287 Amount charged to subsidiaries
under contractual agreements -
21
Net periodic pension costs less amounts charged to subsidiaries Note 27
15 266
b. Pension benefit costs provisions
i The Company The Company sponsors unfunded defined benefit pension plans and a defined contribution
pension plan for its employees. The defined contribution pension plan is provided to employees hired with permanent status
on or after July 1, 2002. The plan is managed by Financial Institutions Pension Fund “Dana Pensiun Lembaga Keuangan” or “DPLK”. The Company’s contribution to DPLK is determined
based on a certain percentage of the participants’ salaries and amounted to Rp3 billion and Rp6 billion for six months period ended June 30, 2014 and for the year ended
December 31, 2013, respectively.
Since 2007, the Company has provided pension benefit based on uniformulation for both participants prior to and from April 20, 1992 effective for employees retiring beginning
February 1, 2009. The change in benefit had increased the Company’s obligations by Rp699 billion, which is amortized over 9.9 years until 2016. In 2010, the Company replaced
the uniformulation with Manfaat Pensiun Sekaligus “MPS”. MPS is given to those employees reaching retirement age, upon death or upon being disabled starting from February 1, 2009.
The change in benefit had increased the Company’s obligations by Rp435 billion, which is amortized over 8.63 years until 2018.
The Company also provides benefits to employees during a pre-retirement period in which they are inactive for 6 months prior to their normal retirement age of 56 years, known as pre-
retirement benefits “Masa Persiapan Pensiun” or “MPP”. During the pre-retirement period, the employees still receive benefits provided to active employees, which include, but are not
limited to, regular salary, health care, annual leave, bonus and other benefits. Since 2012, the Company has issued a new requirement for MPP effective for employees retiring beginning
April 1, 2012, whereby the employee is required to file a request for MPP and if the employee does not file the request, he or she is required to work until the retirement date.
34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited
Figures in tables are expressedin billions of rupiah, unless otherwise stated
86
continued b. Pension benefit costs provisions continued
i
The Company continued The following table presents the change in projected benefits obligation of MPS and MPP for
for six months period ended June 30, 2014 and for the year ended December 31, 2013:
June 30, December 31,
2014 2013
Change in projected benefits obligation
Unfunded projected benefits obligation at beginning of year
2,200 2,436
Service costs 40
97 Interest costs
97 150
Actuarial gains 30
342 Benefits paid by employer
44 141
Unfunded projected benefits obligation at end of year
2,263 2,200
Unrecognized prior service costs 440
506 Unrecognized net actuarial losses
61 50
Pension benefit costs provisions at end of period 1,762
1,644
Movements of the pension benefit costs provisions during six months period ended June 30, 2014 and for the year ended December 31, 2013:
June 30, December 31,
2014 2013
Pension benefit costs provisions at beginning of year 1,644
1,373 Total periodic pension costs
193 412
Employer’s contributions 75
141
Pension benefit costs provisions at end of period 1,762
1,644
The principal actuarial assumptions used by the independent actuary based on the measurement date as of December 31, 2013 and 2012 are as follow:
December 31, December 31, 2013
2012
Discount rate 9.00
6.25 Rate of compensation
8.00 8.00
34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued